NEW YORK, May 19, 2018 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Aceto Corporation ("Aceto" or the "Company") (NASDAQ: ACET) and certain of its officers. The class action, filed in United States District Court, Eastern District of New York, and docketed under 18-cv-02437, is on behalf of a class consisting of investors who purchased or otherwise acquired Aceto securities between February 1, 2018, through April 18, 2018, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Aceto securities between February 1, 2018, and April 18, 2018, both dates inclusive, you have until June 25, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Aceto Corporation markets, sells, and distributes human health products, pharmaceutical ingredients, and performance chemicals. The Company offers finished dosage form generics, nutritionals, pharmaceutical intermediates, active pharmaceutical ingredients, specialty chemicals, and agricultural protection products.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) due to undisclosed competitive and pricing pressures, Aceto was unlikely to meet the performance metrics the Company provided to its investors as financial guidance; (ii) accordingly, Aceto's financial guidance was overstated; and (iii) as a result of the foregoing, Aceto's financial statements and Defendants' statements about Aceto's business, operations, and prospects, were materially false and misleading at all relevant times.
On April 18, 2018, after the market closed, Aceto disclosed that "the financial guidance issued on February 1, 2018, should no longer be relied upon," and suspended "further financial guidance for at least the balance of the fiscal year." Aceto also disclosed that "the Company anticipates recording non-cash intangible asset impairment charges, including goodwill, in the range of $230 million to $260 million on certain currently marketed and pipeline generic products as a result of continued intense competitive and pricing pressures." Aceto also disclosed the resignation of its Chief Financial Officer, Edward Borkowski, who had joined Aceto just two months earlier.
As a result of the disclosure, Aceto's stock price fell $4.74 per share, or 64%, to close at $2.66 per share on April 19, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 Ext. 9980
SOURCE Pomerantz LLP